New Delhi: The Government is considering a proposal to allow Alliance Air, a subsidiary of Indian Airlines, to lease new aircraft to replace its ageing fleet, Minister of State for Civil Aviation Rajiv Pratap Rudy said today (Nov 10).

"A proposal for Alliance Air to replace its ageing fleet through the leasing route is under consideration of the Government," he told reporters on the sidelines of an "open house" session with all concerned agencies at the Indira Gandhi International Airport.

Indian Airlines and Air India are already proceeding with plans to expand and replace their fleets.

To questions regarding modernisation of Delhi and Mumbai airports, he said, "We are going as per the planned schedule and will select the financial consultant on November 14" when the next meeting of the empowered committee of the Group of Ministers on airport privatisation would be held.

The Government was also considering giving productivity-linked incentive (PLI) to the employees of Indian Airlines, but the airline board would take a final decision, Rudy said.

He, however, refused to elaborate on the scheme saying, "The employees will have to work more to earn more." IA staffers have been demanding PLI for all sections of employees.

The 'open house' session witnessed slogan shouting by Airports Authority of India employees, who were protesting against privatisation of the two metro airports and demanding that the Airports Authority Employees Union (AAEU) be taken into confidence on the entire issue.

Rudy spoke to the agitating AAI staffers in an attempt to allay their apprehensions about privatisation and later met the AAEU leaders.

PTI